Grupo Mateus Balances Growth and Rising Costs in Q4 2024

Grupo Mateus, a major retail player in Brazil, closed the fourth quarter of 2024 with a net profit of R$388 million ($65 million), maintaining stability from the previous year.

Revenue grew 15.7% year-over-year to R$8.73 billion ($1.455 billion), driven by store expansions and steady same-store sales growth. These results highlight the company’s ability to expand its market presence despite rising operational costs.

The retailer faced significant cost pressures during the quarter. The cost of goods sold increased 14.9% to R$6.72 billion ($1.12 billion), while operating expenses rose 17.3% to R$1.27 billion ($212 million).

Financial losses deepened to R$162.7 million ($27 million), a 26.7% decline from the prior year, and tax liabilities surged to R$88.2 million from R$25.5 million in Q4 2023.

Despite these challenges, Grupo Mateus achieved a 20.4% increase in EBITDA, reaching R$730.3 million ($122 million). The EBITDA margin improved slightly to 8.4%, reflecting disciplined cost management amid rising expenses.

Strategic Growth Amidst Market Challenges

The company invested R$364.6 million ($61 million) in fixed assets during the quarter, a 9.9% increase from the previous year, focusing on new store openings and construction projects for future locations. By December, Grupo Mateus operated 272 stores, including 168 food retail outlets and 104 electronics stores.

Same-store sales grew by 5.9%, though December saw slower growth due to weaker consumer demand compared to October and November, which benefited from higher volumes and pricing.

Grupo Mateus also improved its financial health by reducing net debt from R$1.11 billion ($185 million) in September to R$609.6 million ($102 million) by year-end, lowering its leverage ratio to 0.29x EBITDA.

These results underscore Grupo Mateus’ resilience and strategic focus on expanding its footprint in Brazil’s North and Northeast regions while managing cost challenges, offering valuable insights into regional retail trends and operational strategies for sustained growth in competitive markets.

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